AUD/USD: early bullish chop testing 0.76 handle

AUD/USD is currently in a start to the week chop, between 0.7579 and 0.7608.

"The Australian dollar posted a key reversal before the weekend, even before the last leg down late in the North American session in response to the developments in Turkey," noted analysts at Brown Brothers Harriman.

The markets started out with the yen on the offer and a slightly softer dollar while the Aussie gapped up on the open and has been testing the 0.76 handle since. However, the greenback has been supported otherwise on the data that is coming in from America and improving in the second quarter of this year, opening suggestions that the Fed could be in a position to raise rates at some point later this year.

AUD/USD levels

"The break of $0.7575 would suggest potential toward $0.7475-$0.7500, however, given that the coup attempt was defeated, the Aussie may first try to recover from knee-jerk losses," suggested analysts at BBH. "A move above the $0.7650 area would be an early sign that the bearish scenario is not panning out." 0.7140 is a major support to the downside and 0.7680 is key resistance to the upside.